North East independent beds and mattresses retailer Slzzp owed creditors almost £200,000 ahead of entering administration.
Paul Kings and Lynn Marshall, both of KRE (North) Limited, were appointed as joint administrators of Cav Sleep Limited, trading as Slzzp, on 20 January 2026.
Detailed in a new report on Companies House, the company was immediately hit by the COVID-19 pandemic and took out a bounce back loan to assist with cashflow as many of the walk in purchases reduced during this period.
The company has always traded with limited success but the move to more online selling, coupled with competitor shops, reduced profitability over the years. According to accounts for the period ended 30 September 2024, the company posted a loss of £30,000, widening from a loss of £23,000 in 2023.
The company has always relied on walk in custom and had seen a downturn in footfall because of the cost-of-living crisis. This, coupled with increases in utilities and staff costs, made the financial position worsen.
As Autumn/Winter of 2025 approached, the company was continuing to receive footfall within the stores and although the Sunderland and Westerhope shops were trading with limited success, the larger shop in Newcastle didn’t have the required custom to make it profitable.
Rental payments were being missed, and pressure was starting to mount from suppliers and landlords alike. The Directors sought advice at this stage and with the post-Christmas sale period approaching, decided to try and continue to trade in 2026 to hopefully take advantage of what has historically been a thriving period of trade.
Unfortunately, by the second week of January 2026, only a dozen orders had been placed, which was insufficient to allow significant payments to creditors. The Directors decided that the company could no longer trade and that it was insolvent.
Trading ceased on 12 January 2026, with the appointment of administrators following as highlighted above.
Upon appointment, administrators noted a cash balance of £9,000 with stock valuing around £32,000, with the latter expected to generate £15,000.
As for creditors, unsecured creditors are owed £190,000, which includes £23,000 to 36 combined consumer claims, as well as £101,000 to the trade and £42,000 owed in redundancy claims. It is expected that creditors will suffer a shortfall of £166,000.
